PRESS RELEASE
July 28th, 2008
Extraordinary Shareholders General Meeting of OLTCHIM decided to postpone the increase in the share capital of the company
Today, 25 July 2008, at the company’s headquarter, the Extraordinary Shareholders General Meeting of SC OLTCHIM SA decided to postpone the increase in the share capital until the receive of an answer from the General Department of Competition of EU, if this increase takes the form of public assistance or not.
"It is normal for the state to recover it’s investments in Oltchim. I mention that Oltchim’s debt against the Romanian state does not represent fees or taxes not paid by the company. This debt represent installments to capital investment loans paid for Oltchim by The Ministry of Finance, as a result of company’s financial dificulty after the amendment to the legislation related to the state investments, respectively the enforcement of customs duties on imported equipment and technologies. Therefore, it is normal for the state to recover this money either by capital increase or through the privatization of the company and debt payment by the new owner", said Mr. Constantin ROIBU, CEO and President of Management Board of OLTCHIM.
Oltchim is the largest petrochemical work in Romania and is the market leader in Central and Eastern Europe for a certain range of products like caustic soda, polyvinyl chloride (PVC), polyols, plasticisers. Currently, the company carry out a impressive investment program, worthing over 350mil Euro, intended to revamp and increase production capacities.
SC OLTCHIM SA has a share capital of 32,36 million RON, divided into 323,6 million shares with a nominal value of 0,10 lei. In Oltchim’s shareholder structure, AVAS owns 53,26% of the share capital, the remaining 46.74% being held by minority shareholders. It is noticed that this capital is very small against the turnover and investment plan. It is normal to take place a capital increase made by shareholders.
SC OLTCHIM SA is the largest petrochemical work in Romania. Established in 1966, OLTCHIM provides chemicals for customers in over 80 countries. OLTCHIM is an important player for the regional chemical industry, being number one in Central and Eastern Europe for chlor-alkali products, polyether polyols and propylene oxide. OLTCHIM is the second player in the region on the market of polyvinyl chloride (PVC).
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